Definition
LEAPS (Long-Term Equity Anticipation Securities) are options contracts with expiration dates typically ranging from one to three years. They allow investors to gain long-term exposure with less capital than buying stock outright. LEAPS have higher premiums but more time for the trade to work.
Example
Buying a January 2027 LEAP call on a stock gives you over 2 years for your bullish thesis to play out.
FAQ
What is LEAPS?
Long-term options with expiration dates over one year away.
Why is LEAPS important?
LEAPS helps investors evaluate options and make more informed decisions.